Bring your own license (BYOL) is a licensing model where users bring their existing software licenses to a cloud platform or third-party service.
Traditionally, most licenses are tied to specific servers, which can be difficult for businesses since these licenses cannot be reused without violating certain licensing laws. When a workforce needs valid and available licensing, many companies run into issues when trying to cover all license requirements to run their operations. With BYOL, it is much easier (and more affordable) to use current software licenses at scale. Instead of buying new licenses when the need arises, BYOL enables businesses that use cloud computing to use their existing licenses on a global level, meaning they can deploy and track their licenses across the entire company. Here are some of the primary features of BYOL that make this possible.
BYOL offers users the flexibility to utilize their existing software licenses on various platforms, on-premises environments, and cloud environments, adapting to changing business needs without the burden of additional licensing constraints. More specifically, this multi-cloud and hybrid approach liberates companies from vendor lock-ins, enabling them to select the most suitable platforms for their specific needs. With BYOL, companies can effortlessly scale their software usage, integrating licensed tools seamlessly into existing systems, and accommodating international operations' legal and regulatory requirements.
By improving compliance management and empowering businesses to optimize resource allocation with BYOL, these organizations can foster greater agility and efficiency in their IT strategies. Companies can make the most of their software investments, adapt to evolving business conditions, and maintain greater control over their technology ecosystem.
Another primary feature of BYOL is an organization’s ability to curb their spending and use what they have already purchased. With BYOL, organizations can save on licensing costs by leveraging their current investments rather than purchasing new licenses for the same software, optimizing their budget allocation and maximizing the value of their initial software investments. Moreover, BYOL helps companies avoid double payments by using their own licenses on third-party services, preventing unnecessary expenses for bundled licenses.
BYOL also gives companies with pre-existing licenses better negotiating power with software vendors, leading to more favorable terms and pricing for additional services or upgrades. BYOL even assists a company in eliminating legacy costs by phasing out old systems with ongoing maintenance expenses, making a smooth transition to modern environments using their existing licenses. At the very least, BYOL empowers companies to streamline their software expenditures, maintain compliance, and make efficient use of their software resources, resulting in substantial cost savings for their operations.
Because of the flexibility and application portability of BYOL, it is far easier for companies to tailor a service to their own needs. Companies can deploy their licensed software across various cloud service providers and on-premises environments, allowing them to choose the best infrastructure for their needs without being locked into a single vendor. The ability to move licensed software seamlessly between different environments ensures smooth migrations and adaptability to changing business requirements, which also means these businesses can create more efficient and productive environments that are also cost-effective!
BYOL also enables companies to integrate their licensed software into their existing IT ecosystem, preserving their preferred tools alongside new software services for enhanced efficiency and productivity. With the freedom to experiment with new platforms and cloud services without committing to additional licenses, BYOL fosters innovation, encouraging businesses to discover more effective solutions for their specific needs.
BYOL provides companies with enhanced tracking and reporting capabilities, too. First, its solutions offer real-time visibility into license usage, allowing companies to monitor which licenses are being utilized, when, and by whom, enabling efficient resource allocation. Compliance management becomes more streamlined as detailed insights into license usage and entitlements help companies adhere to software agreements and avoid non-compliance risks. Moreover, BYOL ensures audit readiness with well-documented records of software deployments and usage, simplifying the auditing process and reducing potential legal and financial implications.
These tracking and reporting features are also key for future-proofing companies and helping with resource allocation. The ability to track usage trends and forecast future license needs empowers companies to make data-driven decisions, preventing unexpected shortages or overspending. Plus, centralized license management platforms consolidate all licensed software data, making it easier for companies to track and report on licenses across different departments and locations. BYOL's historical usage records provide valuable insights for performance analysis, trend identification, and long-term optimization of software licenses.
BYOL offers benefits that can completely transform business operations, including the many advantages highlighted in its key features. These are some additional advantages of BYOL that companies can enjoy.
Vendor negotiation: Companies with pre-existing licenses can negotiate better terms and pricing with software vendors when considering new services or upgrades, empowering businesses with stronger bargaining power and leading to more favorable deals.
Compliance management: BYOL solutions often include tools for tracking and reporting license usage, making it easier for companies to ensure compliance with software agreements and licensing terms and reducing the risk of legal and financial penalties.
Version control: With BYOL, companies have greater control over the versions of their licensed software. They can decide when and how to update without being forced into automatic upgrades, ensuring compatibility with their current workflows.
Geographical reach: BYOL allows companies to use their licenses in different regions, accommodating varying legal and regulatory requirements when operating internationally.
Application portability: BYOL enables seamless migration of licensed software between different environments, guaranteeing continuity and adaptability to changing business requirements.
Innovation and experimentation: BYOL gives companies the freedom to experiment with new platforms and cloud services without committing to additional licenses, fostering innovation and promoting the discovery of more effective solutions.
Even though there are endless possibilities and benefits to BYOL, organizations do need to implement it correctly to avoid some of the challenges of this licensing method. For example, compatibility issues may arise since not all software licenses may be transferable or compatible with every cloud service provider or third-party platform. In response, companies need to carefully examine license agreements before implementing them into business operations.
Another challenge is the level of vendor support for BYOL deployments. Some software vendors may not provide full technical support or updates for software used under BYOL arrangements, which can impact maintenance and performance. Plus, data security and privacy concerns may arise when migrating licensed software to external environments, requiring businesses to ensure that their data is adequately protected and compliant with relevant regulations.
Companies must also maintain accurate records and documentation to handle potential software audits effectively and mitigate audit risks associated with BYOL deployments. By addressing these challenges proactively, businesses can make well-informed decisions and implement strategies to optimize the benefits of BYOL while mitigating potential risks.
Companies that want to grow and embrace cloud services also need resources that can scale with their workforce and the demands of their industry. BYOL makes it possible to collaborate and share essential information across as many devices as needed, in all kinds of geographical regions, for a much lower price. By decoupling licenses from hardware devices, there is a notable increase in dedicated resource availability, allowing businesses to better meet compliance requirements and achieve cost reductions.
BYOL can be the best move for your business, especially if executed correctly. For better license optimization, more innovation, and operating at scale, managing software assets on the cloud via BYOL is all possible! With that said, it is also important to note that license compliance in hybrid and multi-cloud environments and understanding BYOL licensing rules across different cloud providers can be a challenge.
ServiceNow Discovery is an invaluable tool for businesses that are navigating this implementation process. By utilizing Amazon AWS Cloud and Microsoft Azure Cloud discovery patterns, ServiceNow Discovery efficiently identifies licenses across on-premises and cloud environments. The application's capability to discern crucial details like cloud provider, virtual machine specifics, and license type ensures comprehensive visibility into licensable software on virtual machines.
This level of precision empowers businesses to effectively manage their software assets and optimize resource allocation, enabling better compliance with licensing agreements and streamlining software management across diverse environments. Learn more about ServiceNow Discovery and dive into our IT asset management solutions today!